A Principal Is Not Normally Liable for the Tort of an Agent

question 21

True/False

A principal is not normally liable for the tort of an agent committed within the scope of the agency or employment.​

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Definitions:

Collateralize

The act of using an asset as security for a loan, ensuring the lender can seize the asset if the borrower defaults.

UPA

Uniform Partnership Act, a standardized set of laws to regulate the formation and management of partnerships in the United States.

Mortgage

A transfer of an interest in property for the purpose of creating a security for a debt.

Partnership Property

Assets purchased or acquired for the purpose of the partnership business, jointly owned by all partners according to the partnership agreement.